City Council Minutes

Mayor Pro Tem Ayers called the meeting to order with the Pledge of Allegiance at 7:30 p.m. in the Northville City Hall Council Chambers, 215 West Main Street, Northville, Michigan.

Present: Mayor Pro Tem Carolann Ayers, Councilmembers Kevin Hartshorne, Jerome Mittman, and Thomas Swigart

Absent: Mayor Christopher Johnson (excused)

A. Citizen Comments None

Motion Mittman, seconded by Hartshorne to approve the agenda presented. Motion carried unanimously.

Assistant City Manager/Finance Director Bateson introduced the budget review session with an overview of the factors influencing the FY04/05 budget.

The amount of unlevied operating millage continues to be diminished due to the restrictions of Proposal A and the Headlee Amendment.

While property values continue to escalate, the increase in taxable values for FY2004-05 are limited to 2.3% under Proposal A.

Historically, state-shared revenues have provided the General Fund with its second largest source of revenue. However, due to a slowdown in the economy, and the State of Michigan’s competing need for those funds, the City experienced a decrease in state-shared revenue in 2003-04 and is not optimistic about increases in that revenue source for the next few years.

Despite the City’s efforts to control the millage rate, the Headlee limitation is quickly being eroded, largely due in part to the "uncappings" of taxable value being accounted for as "new construction" in the Headlee calculation.

Along with other fully developed communities, the City of Northville is expected to reach the Headlee limitation within a few years. The issue will likely be a high priority to address within the next year.

The FY 2004/05 budget is based on an operating millage of 13.3 mills.

John McLenaghan, City Assessor, Wayne County Appraisal Company, pointed out several key facts regarding the property tax revenue.

The total assessed value of residential properties increased by 4.02%; the overall assessment change for all classes is 6.63%.

The taxable value for the community increased 5.90% to $327,778,813.

The variance between the SEV and Taxable Value for total properties in the City is 28%.

With the Headlee Roll Back Formula, the current maximum millage rate for 2004 is 14.453 mills.

Council Comments: Questions were raised regarding a Headlee Override, the PILOT program at Allen Terrace, conference and meeting room rental revenues, and parking fine revenues.

City Council: Minimal increase from the current year budget; the budget continues important City memberships, community contributions and relationships.

City Manager: Modest increase from the current year budget. The proposed budget eliminates attendance at the Michigan Municipal League conference, subscription to the Journal Newspaper, and all City promotion advertising.

Council Comments/Discussion: It was noted that in July 2003, the City Manager became an "ICMA Credentialed Manager" and will attend the 40 hours of approved continuing education to maintain the designation.

City Attorney: Proposed budget provides for a nominal increase in attorney fees. It was noted that the City Attorney will resign in early Fall 2004 and the search for a new City Attorney will commence during the spring and summer of 2004. The general and prosecution legal services budgets are at levels consistent with prior years.

Council Comments: Brief discussion and questions on the process for selecting a new City Attorney and a suggestion to provide the City Council with a "risk/opportunity" report.

Elections: Proposed budget provides for the administration of the 2004 August Primary and November General elections, various software and hardware maintenance agreements, and maintenance of the Qualified Voter File and Optech voting system.

City Clerk: Modest increase from current year budget. Proposed budget eliminates overtime, contracted labor for sick/vacation staffing, and a decreased amount available for education and training.

Finance: Decrease from current year budget primarily due to a reallocation of wages/fringes to the Tax Department for Treasurer and clerical duties and a reduction in part-time wages due to the return of a staff member on an extended medical leave.

Technology: Current budget reflects a continuation of multi-year projects, including: 1) implementation of Document Imaging System Phase II, 2) continuation of City website and e-government planning, and 3) continued evaluation of long-term goal of becoming a "24 hour city hall" via the Internet. The GIS project is delayed due to Wayne and Oakland County budget constraints and limitations on City staff time to devote to this project.

Taxation: The proposed budget reflects the re-organization of the Tax Department, reallocation of the wages/fringes for the Treasurer and provision for an Assessor/Deputy Treasurer. In the long-term budget plan, it is proposed that this re-organization will significantly reduce the Assessing Services expenditures.

Council Comments: Brief discussion and questions on monitoring the claims of the homestead exemption for non-homestead property.

Police: The proposed budget provides for a continuation of most of the services currently provided. Proposed capital outlay expenses do not include the purchase of new patrol vehicles. Several dispatch related items were excluded from the budget, as the need for these items are dependent on the dispatch consolidation decision and the Oakland County 800 MHz radio project. Other eliminated items included range rental and training, decreases in prisoner lodging costs, training and tuition reimbursement, funding of full-time dispatcher position, various employee retirement payouts, and furniture related to the Oakland County radio project.

Council Comments: Questions raised on racetrack services and the increase in funds designated for parking enforcement.

Building and Grounds: Decrease from current year budget due to a reduction in expenditures for general operation and maintenance. Reductions include elimination of dust control and tree work in cemetery, reduce cleaning at City Hall from 5 to 3 days per week, reduce mowing cycles for Mill Race Village and other parks and rights-of-way, and reduction of tree plantings and trimmings.

Council Comments: Questions and discussion on the Ash Trees and lawn maintenance. A concern was expressed that the $1,000 proposed for new trees was too low and it was suggested that Public Improvement Funds be used to fund new tree planting.

Department of Public Works: Proposed budget reduces the level of service provided in previous years through the elimination of window cleaning in the parking structures, overtime for plowing parking lots, and a reduction in salaries allocated for hauling snow out of the downtown parking lots.

Council Comments: Questions rose regarding plowing parking lots, with a suggestion that the DDA review its budget and consider allocating funds to the General Fund for downtown parking lot maintenance and snow removal services.

Planning, Zoning, and Inspection Services: The proposed budget provides for a consistent level of services. The implementation of the Rental Registration and Inspection Program is on an indefinite hold due to budget restraints.

Shared Services: Proposed budget provides for a continuation of General Fund contributions to the shared services agreements with Northville Township.

Contributions to Other Funds: Decrease from current year budget due to no projected contributions to the Major Street Fund.

Council Comments: Question rose regarding the MMRMA Retention Fund.

Debt Service: Proposed budget provides for annual debt service payment for the general obligation bonds for the 1990 Street Improvement Program, 2000 public safety bonds, Parks and Recreation installment purchase loan reimbursed to the General Fund, and the City Hall copier installment purchase.

Insurance, Central Supplies, and Unallocated Reserves: The proposed budget reflects the costs to participate in a risk management pool, costs dealing with office supplies, copy machine supplies, office equipment maintenance, and postage. The unallocated reserve provides for unusual and unforeseen expenditures.

Fire: The proposed budget remains in line with the current year budget. Use of on-call personnel will assist in daytime staffing for the Fire Department.

Fire Equipment and Replacement Fund: The fund allows for the purchase of up-to-date equipment to meet current standards.

Staff requested direction from City Council relative to the proposed 13.3 city operating millage rate and the maximum allowed rate of 14.453 mills, as adjusted by the Headlee rollback formula. City Council consensus determined that in general, the proposed millage rate was at a good level and should remain with no increase.

The FY 2005 Budget Cut List was reviewed. Discussion ensued regarding past requests from retirees for a Benefit E Adjustment, which is 28 year commitment. A suggestion was made to consider funding a one-time allocation to retirees as opposed to the Benefit E Adjustment commitment. Other suggestions included funding items on the "cuts list" with available funds in the current year budget and establishing a equipment replacement fund for police patrol vehicles.

A. Mayor and Council Communications None

B. Staff Communications None

There being no further business to come before Council, the meeting was adjourned.

Respectfully submitted,

Dianne Massa
City Clerk